Parsons Announces Pricing of $350M of Convertible Senior Notes Due 2025

Technology provider Parsons Corp. has announced the pricing of its private offering of $350 million aggregate principal amount of its 0.25% convertible senior notes due 2025.

In connection with the offering, the company entered into convertible note hedge and warrant transactions to offset potential dilution. The offering was upsized from the previously announced offering of $300 million aggregate principal amount of notes. 

The company also granted the initial purchasers an option to purchase, for settlement within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $50 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on or about Aug. 20, subject to customary closing conditions, and is expected to result in approximately $341 million in net proceeds to the company.

The company announced it expects to use approximately $36 million of the net proceeds from the sale of the notes to pay the net cost of the convertible note hedge transactions. It will use the remainder of the net proceeds from this offering for general corporate purposes, including but not limited to, potential acquisitions and working capital.

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